It improves supply chain resilience and encourages innovation.
By prioritizing initiatives that are aligned with principles of circular economy, circular procurement:
helps challenge demand for traditional products and induces the uptake of product service systems.
Traditional products that create dependency on extracted materials including scarce materials are then replaced with innovative ways of meeting the demand, by addressing the fundamental need.
This not only helps increase supply security for the supply chain but encourages suppliers to create innovative products and services improving resource productivity.
– prompts designing out waste and save costs.
Circular procurement revisits your supply chain looking at eliminating waste, not just in terms of what is typically produced as a waste or by-product of production, but rather destroys value in terms of non or underutilized assets and resources. With this, there is prominence is given to effective recourse management, which reduces costs and results in increased resource efficiency.
Circular procurement is more than a purchasing choice—it’s an investment in a robust, competitive, and secure future.
How is your organization embracing circular procurement? Let’s share ideas!
